Correlation Between Jiangsu Financial and Bank of Suzhou
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Bank of Suzhou, you can compare the effects of market volatilities on Jiangsu Financial and Bank of Suzhou and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jiangsu Financial with a short position of Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Bank of Suzhou.
Diversification Opportunities for Jiangsu Financial and Bank of Suzhou
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Bank is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Bank of Suzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Suzhou and Jiangsu Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jiangsu Financial Leasing are associated (or correlated) with Bank of Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Suzhou has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Bank of Suzhou
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the Bank of Suzhou. In addition to that, Jiangsu Financial is 1.04 times more volatile than Bank of Suzhou. It trades about -0.11 of its total potential returns per unit of risk. Bank of Suzhou is currently generating about 0.29 per unit of volatility. If you would invest 740.00 in Bank of Suzhou on September 12, 2024 and sell it today you would earn a total of 54.00 from holding Bank of Suzhou or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Bank of Suzhou
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Bank of Suzhou |
Jiangsu Financial and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Bank of Suzhou
The main advantage of trading using opposite Jiangsu Financial and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Bank of Suzhou can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bank of Suzhou will offset losses from the drop in Bank of Suzhou's long position.| Jiangsu Financial vs. China Petroleum Chemical | Jiangsu Financial vs. PetroChina Co Ltd | Jiangsu Financial vs. China Mobile Limited | Jiangsu Financial vs. Industrial and Commercial |
| Bank of Suzhou vs. China Petroleum Chemical | Bank of Suzhou vs. PetroChina Co Ltd | Bank of Suzhou vs. China Mobile Limited | Bank of Suzhou vs. Industrial and Commercial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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